Part 343

Economy -------

Economic overview: India's economy is a mixture of traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of support services. Faster economic growth in the 1980s permitted a significant increase in real per capita private consumption. A large share of the population, perhaps as much as 40%, remains too poor to afford an adequate diet. Financial strains in 1990 and 1991 prompted government austerity measures that slowed industrial growth but permitted India to meet its international payment obligations without rescheduling its debt. Production, trade, and investment reforms since 1991 have provided new opportunities for Indian businessmen and an estimated 200 million plus middle class consumers. New Delhi has always paid its foreign debts on schedule and has stimulated exports, attracted foreign investment, and revived confidence in India's economic prospects. GDP growth in 1992-95 has averaged nearly 5%. Most of the country's external fundamentals - including the current account balance and reserves (now nearly $17 billion) are healthy. Party politics is increasingly shaping the debate over economic reforms. In addition, the 25 Indian states and several union territories, which are playing a more active role in determining economic policy, are further complicating the economic climate. The Indian Government will also have to watch closely rising government expenditures and higher debt servicing which could create a debt trap by the turn of the century. Nevertheless, India should achieve economic growth of 5.5%-6.5% annually through the next several years. Even if a weak coalition government comes to power in 1996 and is unable to push reforms aggressively, parts of the economy that have already benefited from deregulation will continue to grow. Moreover, the country can build on other strengths, including its diverse industrial base, large scientific and technical pool, well-developed legal system, and its large middle class to achieve higher growth.

GDP: purchasing power parity - $1.4087 trillion (1995 est.)

GDP real growth rate: 5.5% (1995 est.)

GDP per capita: $1,500 (1995 est.)

GDP composition by sector: agriculture: NA% industry: NA% services: NA%

Inflation rate (consumer prices): 9% (1995)

Labor force: 314.751 million (1990) by occupation: agriculture 65% (1993 est.)

Unemployment rate: NA%

Budget: revenues: $36.5 billion expenditures: $54.9 billion, including capital expenditures of $11.4 billion (FY94/95)

Industries: textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery

Industrial production growth rate: 10% (1995 est.)

Electricity: capacity: 81,200,000 kW (March 1995) production: 314 billion kWh (1993) consumption per capita: 324 kWh (1993)

Agriculture: rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes; cattle, water buffalo, sheep, goats, poultry; fish catch of about 3 million metric tons ranks India among the world's top 10 fishing nations

Illicit drugs: licit producer of opium for the pharmaceutical trade, but an undetermined quantity of opium is diverted to illicit international drug markets; major transit country for illicit narcotics produced in neighboring countries; illicit producer of hashish and methaqualone; produced 70 metric tons of illicit opium in 1995

Exports: $29.96 billion (f.o.b., 1995) commodities: clothing, gems and jewelry, engineering goods, chemicals, leather manufactures, cotton yarn, and fabric partners: US, Japan, Germany, UK, Hong Kong

Imports: $33.5 billion (c.i.f., 1995) commodities: crude oil and petroleum products, machinery, gems, fertilizer, chemicals partners: US, Germany, Saudi Arabia, UK, Belgium, Japan

External debt: $97.9 billion (March 1995)

Economic aid: recipient: ODA, $1.237 billion (1993); US ODA bilateral commitments $171 million; US Ex-Im bilateral commitments $680 million; Western (non-US) countries, ODA bilateral commitments $2.48 billion; OPEC bilateral aid $200 million; World Bank (IBRD) multilateral commitments $2.8 billion; Asian Development Bank (AsDB) multilateral commitments $760 million; International Finance Corporation (IFC) multilateral commitments $200 million; other multilateral commitments $554 million (1995-96)

Currency: 1 Indian rupee (Re) = 100 paise

Exchange rates: Indian rupees (Rs) per US$1 - 35.766 (January 1996), 32.427 (1995), 31.374 (1994), 30.493 (1993), 25.918 (1992), 22.742 (1991)

Fiscal year: 1 April - 31 March

Transportation --------------

Railways: total: 62,462 km (11,793 km electrified; 12,617 km double track) broad gauge: 37,824 km 1.676-m gauge narrow gauge: 20,653 km 1.000-m gauge; 3,985 km 0.762-m and 0.610-m gauge (1995 est.)

Highways: total: 2.037 million km paved: 981,834 km unpaved: 1,055,166 km (1995 est.)

Waterways: 16,180 km; 3,631 km navigable by large vessels

Pipelines: crude oil 3,005 km; petroleum products 2,687 km; natural gas 1,700 km (1995)

Ports: Calcutta, Cochin, Jawaharal Nehru, Kandla, Madras, Mumbai (Bombay), Vishakhapatnam